Remuneration

Question 1

What is Malus and Clawback provisions?

Answer 1

Malus and Clawback are provisions used in business to describe the adjustment of performance-related compensation. They allow the company in circumstances where it is no longer appropriate for the directors to receive the award or sum where it would be rewarded for failure.

Question 2

What is a Malus provision?

Answer 2

Malus provisions gives a company the right, in certain specified circumstances, to forfeit all or part of a bonus or long-term incentive award for an exec director before it has been awarded / paid (i.e reduce an award)

Question 3

What is a clawback provision?

Answer 3

Gives the right to a company the right to recover sums already paid to an executive director (i.e., demand payment back)